Among other things, the money will be used to pay the wages of the Afghan police, who are heavily plagued by corruption.
"It is in Denmark's interest that we continue to work towards a more peaceful Afghanistan. Therefore, we are now implementing extra funds through 2020 for training and other costs associated with the police and the military,” Foreign Minister Anders Samuelsen said in a press release.
"A peaceful and more stable Afghanistan is a prerequisite for countering migration and terrorist threats against the West, Europe and Denmark," he continued.
Samuelsen made the announcement as he wrapped up a visit to Afghan President Ashraf Ghani.
Denmark has been financially supporting the Afghan police for ten years, and according to Samuelsen, the Danish effort is making a difference.
“Combatting corruption is one of Denmark's focus areas, and we can see that Danish co-financing has succeeded in reducing corruption in the [Afghan] police force. That doesn't mean that the police are immune to corruption, but the fight against corruption is moving in the right direction," he said.
Part of the new Danish financial support will go to an Afghan police academy in Kabul.
Denmark has had soldiers in Afghanistan since 2002. According to the Ministry of Defense, there are roughly 160 Danes currently stationed in Afghanistan, with the majority of them in the country's northern region and in the Kabul area.
The Danish military personnel primarily train and advise Afghan security forces.